Businesses do not exist in isolation of their immediate community and beyond, they create products and services to serve their needs for the purpose of profit making. However, as they carry out their industrial and commercial activities for profit making the need to inculcate a sound Corporate Social Responsibility CSR in their core business strategy has become critical to their long term sustainability and commercial success.
Corporate Social Responsibility Corporate Social Responsibility There are many different definitions and interpretations for corporate social responsibility, but all with considerable common ground.
Different societies have different perceptions of what corporate social responsibility is but all definitions refer to the way in which the core business is managed.
It can therefore be said that social responsibility actions are those that go beyond a company's obligations according to social or environmental regulations, in order to be perceived by the public as supporting their interests Mallenbaker. Often referred to as corporate social responsibility or CSR, this policy spurs businesses to develop means to monitor the public's social perception of them as a responsible business.
The business goal of social responsibility is to encourage the company's actions toward the positive impact of consumer, community and employee responsibility. This not only has an impact on economic growth, but also affects the social and ecological environment. Companies are becoming more and more aware of the impact that their business activities have, especially due to the fact that the media and society hold companies accountable, which attracts a considerable amount of publicity.
Business leaders now have to consider incorporating corporate social responsibility into their business strategies a priority Weber,pp. The Business in Society Mallenbaker. Many companies only become aware when they are surprised by public responses with regard to issues that they did not think was part of the scope of their responsibilities.
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There are 5 main areas which businesses can benefit from CSR: The way in which a company is perceived influences the company's competitiveness. CSR influences a company's reputation Weber,pp. Potential employees may find volunteering and CSR program attractive and current employees may be more motivated by doing good work or 'having a sense of purpose' Weber,pp.
Cost savings ' As a result of substituting materials for more sustainable ones, efficiency gains could be a result.
Capital could be easier to gain as a result of investors being sensitive to sustainability issues Weber,pp. Wal-mart reduces the number of store reports that are printed automatically. Revenue increases from higher sales and market share - An increase in revenue could be achieved indirectly as a result of an improved brand image or directly by a CSR driven product or market development Weber,pp.
Risk reduction or management 'Risk related risks can be avoided or managed by incorporating CSR such as negative media or NO boycotts. Voluntary Hazard Elimination Companies that are socially responsible often act to remove production practices that could cause harm to the public, even if the law does not require them to do so.
This is a voluntary action that companies take upon themselves in an effort to be more socially responsible.Corporate Social Responsibility is a model for incorporating ethical business regulations into the business model.
This model provides corporations a framework to embrace a responsibility towards the community, employees, environment and other service users. Corporate social responsibility is the voluntary contribution of business to society in social, economic and environmental spheres, connected directly to the main business of the company and beyond a statutorily prescribed minimum.
The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition: (ashio-midori.com, ) 'Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the.
Corporate Social Responsibility is a model for incorporating ethical business regulations into the business model. This model provides corporations a framework to embrace a responsibility towards the community, employees, environment and other service users. Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model.
Corporate social responsibility (CSR) is known as a number of other names: corporate accountability, corporate responsibility, corporate ethics, sustainability, corporate citizenship, stewardship, triple bottom line and responsible business, to name just a few.